possible asian alliance partner

Qantas, Virgin Blue

The dogfight between Qantas and Virgin Blue Holdings looks headed for Asian skies with both airlines now reportedly on the lookout for alliances with their Asian peers. According to Fairfax newspapers, the ?Flying Kangaroo? is on the hunt for a partnership with a major Asian airline, with China the key battle ground. Qantas boss Alan Joyce has flagged that the airline?s management was exploring a possible joint venture agreement with a Chinese carrier to revitalise its ailing international services. The list of potential partners includes fellow Oneworld global alliance member Cathay Pacific, along with Air China, China Eastern, China Southern and Hainan Airlines. Any heavyweight alliance with a Chinese carrier would presumably run into some regulatory turbulence and industry watchers have also highlighted the possibility of Joyce using his healthier budget arm Jetstar to strike a deal. Interestingly, Jetstar is already in talks to establish a hub in the Philippines, with reports that the airline is in talks with a local conglomerate. Earlier this month, Jetstar?s chief executive Bruce Buchanan also flagged the idea that Jetstar was in the mood for ?aggressive and deliberate? growth in China. The Asian tie-up talk gathers steam amid news that Virgin Blue Holdings is also setting its sights on Asian skies with Virgin boss John Borghetti working to forge an Asian alliance of his own. Virgin?s deals with Air New Zealand and Etihad Airways have already crossed the line and there?s a good chance that it US tie-up with Delta Airways will also get the tick. With these under its belt Asia seems a logical option and The Australian Financial Review reports talk that the airline is on track for a possible deal with Singapore Airlines. The paper adds that Virgin has also opened channels of communications to other carriers in the region. A successful alliance between Virgin Blue and Singapore Airlines will be a major blow to Qantas.